7th Pay Commission arrears to be paid in August

May 16, 2016

7th Pay Commission arrears to be paid in August

New Delhi: The central government is going to start payment of salaries to its 48 lakh officials and employees according to 7th Pay Commission award from July and six months’ arrears are to be paid in August.

As per official calculation, no huge amount will be required for the payment of arrears.

The government in its annual budget has provisioned Rs 70,000 crore to meet the demand for implementation of 7th Pay Commission for central government employees which will take effect from January 1, 2016, while the allowances would be paid from July 1, 2016.

Basic salary of central government employees is likely to be tripled under the 7th Pay Commission award with employees in the lower rung getting the highest percentage of raise.

In the highest grade, basic salary is likely to rise around to Rs 2,70,000 to Rs 2,50,000 and in the lowest grade to Rs 21,000.

In June end, the cabinet is likely to approve the new pay scales for central government employees after considering report of the 7th Pay Commission, led by Justice A K Mathur, and the report of the 13 member Empowered Committee of Secretaries headed Cabinet Secretary P K Sinha to process the recommendations of the 7th Pay Commission, which was set up in January.

The officials familiar with the developments told The Sen Times that the Finance Minister Arun Jaitley has not been under pressure to meet the demand as he has surplus money in the national exchequer.

“We have provisioned for around 60-70 per cent of the total burden that was talked about,” the officials said adding about Rs 70,000 crore has been provided in the Budget.

The government will issue a circular in respect of online pay-fixation, which will reduce hassles as doing the same manually is both time-consuming and harassing. Pay fixation is a mandatory procedure for getting new pay and perks, the officials told us.

“We’re at the for issuing the notification and one more month will be required to issue after cabinet nod, so we hopefully say that central government employees will get new pay and arrears in July and August respectively,” a source close to the developments told The Sen Times.